"Some of the more extreme reactions that we heard immediately
after the referendum have dissipated a bit and people who were
feeling very aggressive towards us are now feeling a bit more
constructive," he said.

"I do think the mood music, the atmosphere has changed. Whatever
is being said publically ahead of the negotiation, the private
messaging is that people are now engaging with this more as a
shared problem. Something that we have to solve together."

He suggested that the UK's European neighbours have realised that
there is a lot at stake for the EU if an amicable agreement
cannot be thrashed out after Article 50 has been triggered by May
this month.

"There are lots of European jobs at stake in relation to exports
to the UK, trade with the UK, and there is an increasingly
pragmatic approach," Hammond said.

"The prime minister has been very clear, we’re a nation that
honours its obligations and if we do have any bills that fall to
be paid, we’ll obviously deal with them in the proper way,"
Hammond told "The Andrew Marr Show" earlier on Sunday. He did
suggest, however, that the £50 billion figure may be a
negotiating tactic.

He would not comment on the figure directly, but told the BBC
show: "We’re about to enter into a negotiation and very often ...
when you’re about to start a negotiation with people they set out
very large demands and stark positions ahead of that. Obviously,
this is a piece of negotiating strategy that we’re seeing in
Brussels."